As we announced earlier this year in March and reiterated in May, Neil is repositioning the Woodford Equity Income Fund portfolio to reduce the fund’s exposure to less liquid and unquoted investments, down to zero. That process is already underway, but he is not a forced seller in the market. Although we cannot guarantee the value of any of the fund’s assets, we are confident that we will not need to sell them at hugely discounted prices.
The suspension gives Neil time to execute this strategy in the best interests of investors. The capital will be redeployed into more liquid stocks in the FTSE 100 and FTSE 250, which fit in with his core investment strategy. We should also be clear that the fund has not invested in a new unquoted company since June 2017.
Neil and the team remain as passionate about, and committed to, the patient capital asset class as ever and the Woodford Patient Capital Trust’s strategy is unaffected.